Stock Article

Font: Financial Modeling Prep  • Apr 09, 2026

Simulations Plus, Inc. (NASDAQ: SLP) Delivers Strong Revenue Growth and Operational Efficiency in AI-Driven Drug Development

Key Highlights:

• Revenue Growth: SLP reported $24.3 million in revenue, surpassing estimates and reflecting an 8% year-over-year increase.
• Operational Efficiency: Gross margin expanded to 66%, and adjusted EBITDA reached $8.7 million (36% of revenue).
• Financial Stability: The company maintains virtually no debt (debt-to-equity ratio ≈ 0.0038) and a strong current ratio of 5.47, underscoring robust liquidity.

Simulations Plus, Inc. (NASDAQ: SLP) is a leading provider of modeling and simulation software and services for drug discovery and development. The company leverages AI-accelerated approaches and physiologically based pharmacokinetic (PBPK) modeling to support biopharma clients. It competes in the Zacks Computer – Software industry and has a strong track record of financial discipline and innovation.

On April 9, 2026, Simulations Plus reported financial results for its fiscal second quarter ended February 28, 2026. The company posted adjusted EPS of $0.35, beating the Zacks Consensus Estimate of $0.27 (earnings surprise of +29.63%). This compares favorably to $0.31 in the year-ago quarter. GAAP diluted EPS was $0.22.

Revenue totaled $24.3 million, exceeding estimates of approximately $21.7 million. This represents an 8% increase from the prior-year quarter, driven by growth in both segments: software revenue rose 9% to $14.6 million (60% of total), and services revenue grew 8% to $9.7 million.

SLP’s gross profit increased to $16.1 million, with a gross margin of 66% (up significantly from 59% in the year-ago period). Net income rose to $4.5 million. Adjusted EBITDA reached $8.7 million, representing a strong 36% margin on revenue — a clear improvement in operational efficiency.

The company continues to demonstrate excellent financial health with a very low debt-to-equity ratio of approximately 0.0038 (essentially debt-free) and a current ratio of 5.47, highlighting ample liquidity to support ongoing investments in AI-enhanced products and business development.